Bombardier sells Belfast, Casablanca, Dallas operations to Spirit

Bombardier said the US firm would take over operations in Belfast, which assembles the wings for the Airbus A220.
31 Oct, 2019
  • Bombardier said the US firm would take over operations in Belfast, which assembles the wings for the Airbus A220.
  • Spirit AeroSystems will also acquire Bombardier's operations in Casablanca and a plant in Dallas specialising in maintenance and repairs.
  • It is a sale that offers hope for a positive future for Bombardier workers in Northern Ireland and their colleagues in the supply chain.

LONDON: Canadian manufacturing group Bombardier announced Thursday it was selling its aerostructures business to US firm Spirit AeroSystems, involving operations in Belfast, Casablanca and Dallas, in a cash-plus-debt deal exceeding $1 billion.

Bombardier announced its willingness to sell these assets last May as part of a broad restructuring to focus on trains and business aircraft.

In a statement, Bombardier said the US firm would take over operations in Belfast, which assembles the wings for the Airbus A220.

Spirit AeroSystems will also acquire Bombardier's operations in Casablanca and a plant in Dallas specialising in maintenance and repairs.

The price includes $500 million (450 million euros) in cash and around $700 million in debt.

The 2019 revenues for the three operations are expected to be approximately $1 billion.

The British trade union Unite welcomed the deal for the Belfast plant, which employs more than 3,500 people.

"We are pleased that Bombardier has heeded our call to be a responsible seller and the need for Bombardier aerostructures production to be transferred as a whole to a company with an excellent track record in aerospace rather than a short-termist hedge fund," said assistant general secretary Steve Turner.

"It is a sale that offers hope for a positive future for Bombardier workers in Northern Ireland and their colleagues in the supply chain."

Bombardier, which has been in a difficult financial situation for several months, has decided to consolidate all of its aeronautical activities into a single entity named Bombardier Aviation, with operations in Montreal, Mexico and Texas.

 

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